What Is A Consumer Bankruptcy

2014-08-08   minute read

Both individuals and corporations can make use of the Bankruptcy and Insolvency Act. A consumer bankruptcy is simply a bankruptcy filing by an individual in Canada. The major difference from a corporate bankruptcy is that all provinces have laws indicating that individuals, but not corporations, are entitled to keep certain assets - these are calledExempt Assets. While bankruptcy is an option for an individual, no one really wants to use it. Bankruptcy is very much a last resort, but sometimes it may be the only realistic option. The process is fairly straightforward in Canada, but you should still ensure youunderstand the process and the implications.   To start the process, you will file a number of documents with the government with assistance from a government-licensed Trustee in bankruptcy, like those at MNP Ltd. –One of the most critical documents is a statement of your assets and debts. Once those are filed, your creditors are ‘stayed’, meaning they can no longer phone, sue or garnishee you, among other tactics to get their money. During the bankruptcy process you have a number of duties, which generally includes a requirement to file monthly income and expense statements, attend two counselling sessions on debt and credit, provide your Trustee your tax information and pay the appropriate amount of money to the Trustee. To get a clear understanding of the process, it’s strongly recommended you sit down with a Trustee to learn your rights and what will be expected of you. Bankruptcy is only one of the options you should consider if you find yourself in financial difficulty.Please make an appointment with our nearest office to review all the options available to you.​ ​

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